Browsing by Title "Money, output and the payment system: Optimal monetary policy in a model with hidden effort"
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Money, output and the payment system: Optimal monetary policy in a model with hidden effort
(Department of Economics, 2007)We propose a new explanation for the observed difference in the cost of intraday and overnight liquidity. We argue that the low cost of intraday liquidity is an application of the Friedman rule in an environment where a ...